NRAIL's Profit More Than Doubles as Margins Rebound Sharply
The paper manufacturer delivered a stellar Q1, with profit up 111% year-on-year and net profit margin expanding to 5.4%.
NR Agarwal Industries reported a powerful start to FY27, with revenue up 43% and profit more than doubling. The company's net profit margin expanded significantly from the previous quarter.
NR Agarwal Industries has kicked off FY27 with a powerful quarter, delivering a sharp rebound in profitability on the back of strong revenue growth. Profit more than doubled year-on-year, significantly outpacing a healthy rise in sales, which points to a major improvement in operational efficiency.
The company's revenue for Q1 FY27 reached ₹646.96 crore, a 43.1% increase from the same quarter last year and a 6.9% sequential rise. Profit after tax surged 111.4% year-on-year to ₹34.98 crore, marking an even more dramatic 146.3% jump from the previous quarter. This performance lifted the net profit margin to 5.4%, up from 3.7% a year ago and a notable recovery from 2.3% in Q4 FY26.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 646.96YoY +43% | 605.39 | 452.14 |
| Profit (₹ Cr) | 34.98YoY +111% | 14.20 | 16.55 |
| Net Profit Margin (%) | 5.4YoY +46% | 2.3 | 3.7 |
The table illustrates a clear upward trajectory in revenue over the past five quarters. More importantly, it shows a decisive turnaround in profitability after a challenging period last year, with the latest quarter's margin being the highest in this sequence.
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 2.7%, significantly lower than the latest quarter's 5.4%, highlighting the recent improvement.
- The stock has delivered strong returns, gaining 39.5% over the past year and 67.9% over three years.
- The company maintains a robust balance sheet with a Return on Equity (ROE) of 18.0% and a manageable debt-to-equity ratio of 0.73.
Despite the impressive earnings recovery, the stock trades at a significant discount to its industry, with a Price-to-Earnings (P/E) ratio of 5.9 compared to the industry average of 15.9. The coming quarters will show if this stellar margin performance can be sustained to justify a re-rating.
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· NRAIL
(BSE)
ISIN: INE740D01017
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